SAP & IT Outsourcing – RESULTS MATTER!

By |June 24th, 2014|

  Business today is looking for a way to provide shareholder value. Outsourcing has become a popular method to boost stock values because shareholders believe it will reduce costs. While your share price may increase in the short term, you may not see the cost savings, and your share price will suffer later as your cost basis increases. Unfortunately, the cost saving "dream" presented during all those sales pitches often become a "nightmare" of spiraling costs and management headaches. I [...]

SAP and IT Outsourcing – Vendor Management Considerations

By |May 7th, 2014|

  A common trend in IT is outsourcing. The allure of smooth sailing, fewer headaches, and lower cost generally capture senior leadership's attention. The sales pitches about all of the success stories are often compelling. However, just like calm (but murky) waters on a mild day hide the rocks under the surface, so do many of the outsourcing vendor claims. With some background understanding (and a lot of due diligence), you can avoid most of those rocks and navigate the waters. However, [...]

SAP & IT Outsourcing – Vendor Management Tactics & Strategies

By |May 7th, 2014|

In an outsourcing arrangement you have one of two approaches: work up front to reduce potential disputes or be prepared to deal with the fallout. The less aggressive you are with your outsourcing management, the more profitable you are to the outsourcing company. Does fallout mean you will be in court? Sometimes yes, but sometimes it means re-negotiating a contract, or worse still, skyrocketing costs which can exceed the original costs. Outsourcing Relationship or Arrangement The sales personne [...]

9 Games ERP Consultants Play

By |January 14th, 2013|

  Most people in the ERP industry agree that software consultants can play a major role in helping their clients successfully implement a new ERP package. While some consulting firms have more expertise than others do, at least most firms try to operate with their client’s best interest in mind. However, many firms within the ERP industry are outright thieves. They will not hesitate to take advantage of their clients with consulting games to pad their own wallets. In fact, some firms are [...]

SAP Third Party – Indirect Usage Licensing Part 2

By |December 3rd, 2012|

For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” This requirement is becoming more commonplace, and some companies are quite aggressive with it. This follow-up to my previous post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here. Over the years, SAP has set itself apart by aggressively pursuing sales while generally maintaining good customer relations. SAP's strategy is a balancing [...]

Storms Coming on the Salesforce.com Cloud Front

By |November 19th, 2012|

Salesforce.com financial clouds   I recently ran into a post from a pretty well respected investor blog over at “Seeking Alpha.”  The basic takeaway is that the Salesforce.com cloud business is not all it is hyped up to be and that shareholders may be in for a seriously rude awakening [FN1]. -------------------- The way it is described there sounds a LOT like Enron accounting.  They called it a Ponzi Scheme and here is how it works: Employees receive stock options INSTEAD OF cas [...]